Amman - The World Bank recently announced the restructuring of the Electricity Sector Efficiency and Supply Reliability Program in Jordan. Responding to a request from the Jordanian government, the bank extended the deadline for completing a key reform indicator to December 31, 2026. This extension aims to provide more time to complete a review of the electricity market structure given delays caused by regional geopolitical tensions.
اضافة اعلان
According to the program's restructuring document recently issued by the World Bank and translated by Al-Ghad, the amendment extends the deadline for a Disbursement-Linked Result (DLR). This result requires the Ministry of Energy and Mineral Resources to review the current electricity market structure in accordance with the General Electricity Law, and to issue a recommendation to the government regarding potential sector reforms. The deadline has been pushed from June 30, 2026, to December 31, 2026.
The Bank clarified that the restructuring is limited to adjusting the timeline for this specific indicator and updating the implementation and financial disbursement schedules, without any changes to the program's objectives, funding amount, or loan closing date.
The World Bank confirmed that the program continues to make good progress in both implementation and achieving its development goals. It noted that most disbursement indicators scheduled for completion before the end of 2025 have been met, though some associated payments remain pending due to verification delays.
The Bank pointed out that the program has reached advanced stages of implementation, with total disbursements reaching $322.66 million out of the $500 million total, representing approximately 64.5%.
The document also showed that the original loan recorded a disbursement rate of 92.6%, while the disbursement rate for the additional financing stood at 33.3%.
The World Bank attributed the need to extend the electricity market reform indicator to ongoing regional geopolitical tensions, which have impacted the timeline for completing the required studies and reviews.
It emphasized that this adjustment will not affect the program's capacity to achieve its development objectives. These goals include improving the efficiency of the electricity sector, maintaining the integration of grid-connected renewable energy, enhancing electricity service reliability, and supporting the governance of the National Electric Power Company (NEPCO).
The document indicated that the project, approved on March 31, 2023, will proceed toward its scheduled closing date on February 29, 2028. The expected date for full disbursement remains June 30, 2028, with no changes made to the program's overall timeframe.
